Are there penalties for not complying with the Federal Regulations?
YES. Failure to comply with the Federal Regulations may result in a civil or criminal penalty, imposed by HUD or a State Administrative Agency (SAA). Assessed penalties are $1,100 per violation up to a maximum of $1,100,000 for related violations. [3282.10] Furthermore, any person other than an officer or employee of the United States, or a person exercising inspection functions under a State plan, who knowingly and willfully fails to report a violation of any construction or safety standard may be fined up to $1,100 or imprisoned for up to one year or both.